Governments, like individuals, must make choices about how to allocate limited resources among competing needs, which means they face opportunity costs when deciding to allocate resources to one area, as it comes at the expense of funding another area.

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Governments

Question 29

Multiple Choice

Governments,

A) like individuals, face opportunity costs.
B) unlike individuals, do not face opportunity costs.
C) only if they are relatively poor, face opportunity costs.
D) only if they are running budget deficits, face opportunity costs.

Correct Answer: